Director of Guyana’s Local Content Secretariat, Dr. Martin Pertab, said that a new update to the Local Content Act’s first schedule could bring in US$300-350 million annually.
Presently, 40 categories are subject to a legal mandate for contractors to utilise Guyanese goods and services at or above various targets. According to Pertab, government is looking at adding several new areas, with the current target being 20 or so, to bring in additional revenues.
Last year, the Secretariat had estimated based on commitments that the holistic impact of the Act would bring in US$700 million in its first year. However, preliminary estimates show actual local spend has exceeded this estimate.
This year, the Secretariat is focusing on strengthening the Act. He said the agency has had extensive discussions with the private sector, as the Secretariat’s work will be informed by proven in-country capacity.
Dr. Pertab explained that it is important to work with the private sector to make the Secretariat’s work a success. He said there is no ‘one size fits all’ approach, in this regard, since different companies will have different approaches to doing business.
Outgoing President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker, told OilNOW that the Private Sector Commission (PSC) has identified 25 categories which were recommended to the Local Content Secretariat, for an update of the Local Content Act’s first schedule. He said GCCI has identified a few others.
Tucker emphasized that Guyanese companies are no longer only targeting the provision of services labelled ‘low-hanging fruit’, but are going above and beyond, with investments in services like pipe coating and vessel services. Tucker has called for a strengthening of the Act to prevent rent-seeking and contract bundling.
Read this OilNOW exclusive with Dr. Pertab last November, explaining how the Local Content Act secures benefit for Guyanese nationals and firms:
